It appears members of the chareidi community have been victimized again, as they could not pass up another ‘too good to be true’ business opportunity that was sadly too good to be true. The suspected villain is a resident of Bnei Brak too, identified with the chareidi community.

According to a Kikar.net report, the suspect enlisted funds from area residents, including prominent families in the Bnei Brak community, and in recent years, ‘he delivered the goods as promised’ but as is the case in these scams, the house of cards eventually crumbles.

Some of the more significant investors exhibited growing concern of late, inviting their banker to meet with them, asking difficult questions and demanding explanations that were avoided to date, with everyone willing to accept their profits without probing too much.

To their astonishment, there are no investments, and the suspect was not handling their portfolio as they were led to believe, but simply keeping their money and distributing profits based on the Ponzi scheme principle, enlisting new funds constantly to keep the pyramid from collapsing. He admitted to investors that all of the statements he gave them to date were fictitious, and there were no investments to speak of.

In conclusion, the major money manager appears to have fled Israel together with his family, leaving a trail of dust and no money behind. Investors are beginning efforts to locate his whereabouts and NIS tens of millions that have disappeared.

(Yechiel Spira – YWN Israel)